While buying stocks at cut rates, Buffett is also planning on
selling Berkshire Hathaway bonds to take advantage of cheap
capital.

Buffett told
CNN Money's Term Sheet today that the sea of red all over the
S&P 500 earlier this week is exactly what he looks forward
to--a chance to buy low.

"The lower things go, the more I buy. We are in the business of
buying," he said.

It's too bad that Buffett didn't say exactly what he was picking
up from the equities bargain bin. He's not the only hotshot that
sees value in stocks right now.
Even equities-shy Donald Trump is jumping in, buying up cheap
financials.

On S&P's downgrade of US Treasuries, he said, "U.S.
Treasuries are still triple-A in that there is no question that
we will repay the interest and the principal. Every contract will
be repaid. So our bonds are triple-A. Our currency, the dollar,
is not triple-A. Our bonds are."

On the Fed's decision to keep interest rates low, Buffett said,
as cool as always, "I don't really think about things like that."